8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20459

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934

Date of Report (Date of earliest event reported): April 13, 2005

FULTON FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Pennsylvania	0-010587	23-2195389
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification Number)

One Penn Square, P.O. Box 4887, Lancaster, Pennsylvania	17604
(Address of principal executive offices)	(Zip Code)

(717) 291-2411

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 13, 2005 Fulton Financial Corporation announced its results of operations for the first quarter ended March 31, 2005. A copy of the earnings release is attached as Exhibit 99.1 to this Form 8-K. Supplemental financial information included with the earnings release is attached as Exhibit 99.2 to this report.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(b) Exhibits.

Exhibit No.	Description
99.1	Earnings Release dated April 13, 2005.
99.2	Supplemental financial information for the quarter ended March 31, 2005

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FULTON FINANCIAL CORPORATION

Date: April 13, 2005	/s/ Charles J. Nugent
	Charles J. Nugent
	Senior Executive Vice President and
	Chief Financial Officer

EX-99.1

Exhibit 99.1

Fulton Financial Corporation

(Logo Omitted)

FOR IMMEDIATE RELEASE	Contact:	Laura J. Wakeley
(Full text available on PR Newswire)	Phone:	717-371-2379 (4/13/05)
	Office:	717-291-2616

Fulton Financial net income up 15.9% in first quarter

(April 13) – Lancaster, PA — Fulton Financial Corporation (Nasdaq: FULT) earned $41.5 million in the first quarter of 2005, a 15.9 percent increase over $35.8 million for the same period in 2004. Diluted net income per share increased to 33 cents, a 6.5 percent increase over the 31 cents reported for the first quarter of 2004. Annualized return on average assets was 1.50 percent for the quarter. Annualized return on average equity was 13.48 percent and annualized return on tangible equity was 19.56 percent.

“We continued to grow our earnings, both internally and through acquisitions,” said Rufus A. Fulton, Jr., chairman and chief executive officer. “Our acquisitions of Resource Bank in April 2004 and First Washington State Bank in December 2004 added significantly to our loans and deposits and, as a result, to our net interest income. Our first quarter performance was also positively impacted by continued excellent asset quality.”

Loans, net of unearned income, increased $1.5 billion, or 24.6 percent, to $7.7 billion at March 31, 2005, compared to $6.2 billion at March 31, 2004. Approximately $870 million of this increase resulted from the April 1, 2004 acquisition of Resource Bank and the December 31, 2004 acquisition of First Washington State Bank. The remaining increase was realized mainly in commercial loans and commercial mortgages, which grew $405.1 million, or 9.5 percent, and home equity loans, which increased $155.9 million, or 17.0 percent.

Net interest income for the quarter increased $15.3 million, or 18.4 percent, compared to the first quarter of 2004. Fulton Financial’s net interest margin was 3.95% for the first quarter of 2005, compared to 3.92% for the fourth quarter of 2004 and 3.79% for the first quarter of 2004. The improvement in net interest margin reflects the impact of a series of recent increases in short-term interest rates by the Federal Reserve.

Non-performing assets were 0.25 percent of total assets at March 31, 2005, an improvement from 0.32 percent of total assets at March 31, 2004. Annualized net charge-offs for the quarter ended March 31, 2005 were 0.02 percent of average total loans, compared to 0.08 percent for the same period of

2004. As a result of this continued improvement in asset quality, the provision for loan losses decreased $940,000, or 54.0 percent, to $800,000 in the first quarter of 2005, as compared to $1.7 million in the same period in 2004.

Total deposits increased $1.2 billion, or 17.6 percent, to $8.0 billion at March 31, 2005, compared to $6.8 billion at March 31, 2004. The majority of the increase, $1.0 billion, resulted from the Resource and First Washington acquisitions, with the remaining increase due to growth in demand and savings balances offset by a decrease in time deposits.

Other income increased $6.3 million, or 24.1 percent, to $32.5 million in the first quarter of 2005, largely due to mortgage banking income. Approximately $4.2 million of the total increase resulted from the addition of Resource Bank and its mortgage banking and title insurance businesses.

Other expenses increased $11.5 million, or 18.4 percent, compared to the first quarter of 2004, to $73.7 million. Resource Bank and First Washington added $10.8 million to this increase.

Fulton Financial Corporation is an $11.4 billion Lancaster, Pennsylvania-based financial holding company which operates 219 banking offices in Pennsylvania, Maryland, Delaware, New Jersey and Virginia through the following affiliates: Fulton Bank, Lancaster, PA; Lebanon Valley Farmers Bank, Lebanon, PA; Swineford National Bank, Middleburg, PA; Lafayette Ambassador Bank, Easton, PA; FNB Bank, N.A., Danville, PA; Hagerstown Trust, Hagerstown, MD; Delaware National Bank, Georgetown, DE; The Bank, Woodbury, NJ; The Peoples Bank of Elkton, Elkton, MD, Skylands Community Bank, Hackettstown, NJ; Premier Bank, Doylestown, PA; Resource Bank, Virginia Beach, VA; and First Washington State Bank, Windsor, NJ.

In January, the Corporation announced its intent to acquire SVB Financial Services, Inc., based in Somerville, New Jersey. SVB’s sole banking subsidiary is Somerset Valley Bank, also based in Somerville. The bank operates 11 community-banking offices in Somerset, Middlesex and Hunterdon Counties and has approximately $475 million in assets. Pending regulatory and shareholder approval, the acquisition is expected to be completed in the third quarter of 2005.

The Corporation’s financial services affiliates include Fulton Financial Advisors, N.A., Lancaster, PA; Fulton Insurance Services Group, Inc. Lancaster, PA; and Dearden, Maguire, Weaver and Barrett, LLC, West Conshohocken, PA.

Residential mortgage lending is offered by all banks through Fulton Mortgage Company or Resource Mortgage.

Additional information on Fulton Financial Corporation is available on the Internet at www.fult.com.

Safe Harbor Statement:

This news release may contain forward-looking statements about Fulton Financial Corporation’s future financial performance. Forward-looking statements are encouraged by the Private Securities Litigation Reform Act of 1995.

Such forward-looking information is based upon certain underlying assumptions, risks and uncertainties. Because of the possibility of change in the underlying assumptions, actual results could differ materially from these forward-looking statements. Risks and uncertainties that may affect future results include: pricing pressures on loans and deposits, actions of bank and non-bank competitors, changes in local and national economic conditions, changes in regulatory requirements, actions of the Federal Reserve Board, the Corporation’s success in merger and acquisition integration, and customers’ acceptance of the Corporation’s products and services.

#    #    #

2005

EX-99.2

Exhibit 99.2

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended March 31				Variance
	2005		2004		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	140,810	$	113,936	$	26,874		23.6	%
Interest expense		42,562		30,969		11,593		37.4	%
Net Interest Income		98,248		82,967		15,281		18.4	%
Provision for loan losses		800		1,740		(940	)	-54.0	%
Investment securities gains		3,315		5,828		(2,513	)	-43.1	%
Other income		32,538		26,210		6,328		24.1	%
Other expenses		73,731		62,272		11,459		18.4	%
Income Before Income Taxes		59,570		50,993		8,577		16.8	%
Income taxes		18,039		15,147		2,892		19.1	%
Net Income	$	41,531	$	35,846	$	5,685		15.9	%
Fully taxable equivalent (FTE) net interest income	$	100,592	$	85,313	$	15,279		17.9	%
PER-SHARE DATA:
Net income:
Basic	$	0.33	$	0.32	$	0.01		3.1	%
Diluted		0.33		0.31		0.02		6.5	%
Cash dividends		0.165		0.152		0.013		8.6	%
ENDING BALANCES:
Total assets	$	11,418,278	$	9,620,191	$	1,798,087		18.7	%
Loans, net of unearned income		7,747,301		6,217,077		1,530,224		24.6	%
Deposits		7,981,147		6,784,175		1,196,972		17.6	%
Short-term borrowings		1,265,360		1,182,473		82,887		7.0	%
Long-term debt		773,129		571,964		201,165		35.2	%
Shareholders’ equity		1,235,519		968,449		267,070		27.6	%
AVERAGE BALANCES:
Total assets	$	11,210,219	$	9,676,495	$	1,533,724		15.8	%
Loans, net of unearned income		7,675,034		6,187,988		1,487,046		24.0	%
Deposits		7,912,299		6,718,058		1,194,241		17.8	%
Short-term borrowings		1,239,454		1,345,285		(105,831	)	-7.9	%
Long-term debt		681,450		570,075		111,375		19.5	%
Shareholders’ equity		1,249,868		949,725		300,143		31.6	%

FULTON FINANCIAL CORPORATION

FINANCIAL HIGHLIGHTS (UNAUDITED)

	Quarter Ended				Variance
	March 31 2005		December 31 2004		$			%
	(in thousands, except per-share data)
INCOME SUMMARY:
Interest income	$	140,810	$	130,736	$	10,074		7.7	%
Interest expense		42,562		37,261		5,301		14.2	%
Net Interest Income		98,248		93,475		4,773		5.1	%
Provision for loan losses		800		1,052		(252	)	-24.0	%
Investment securities gains		3,315		3,199		116		3.6	%
Other income		32,538		31,970		568		1.8	%
Other expenses		73,731		70,470		3,261		4.6	%
Income Before Income Taxes		59,570		57,122		2,448		4.3	%
Income taxes		18,039		17,035		1,004		5.9	%
Net Income	$	41,531	$	40,087	$	1,444		3.6	%
Fully taxable equivalent (FTE) net interest income	$	100,592	$	95,599	$	4,993		5.2	%
PER-SHARE DATA:
Net income:
Basic	$	0.33	$	0.33	$	—		—
Diluted		0.33		0.33		—		—
Cash dividends		0.165		0.165		—		—
ENDING BALANCES:
Total assets	$	11,418,278	$	11,158,351	$	259,927		2.3	%
Loans, net of unearned income		7,747,301		7,584,547		162,754		2.1	%
Deposits		7,981,147		7,895,524		85,623		1.1	%
Short-term borrowings		1,265,360		1,194,524		70,836		5.9	%
Long-term debt		773,129		684,236		88,893		13.0	%
Shareholders’ equity		1,235,519		1,242,290		(6,771	)	-0.5	%
AVERAGE BALANCES:
Total assets	$	11,210,219	$	10,542,258		667,961		6.3	%
Loans, net of unearned income		7,675,034		7,304,717		370,317		5.1	%
Deposits		7,912,299		7,508,299		404,000		5.4	%
Short-term borrowings		1,239,454		1,117,620		121,834		10.9	%
Long-term debt		681,450		668,239		13,211		2.0	%
Shareholders’ equity		1,249,868		1,119,427		130,441		11.7	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED CONDENSED ENDING BALANCE SHEET (UNAUDITED)

	March 31				Variance
	2005		2004		$			%
	(in thousands)
ASSETS
Cash and due from banks	$	336,039	$	308,269	$	27,770		9.0	%
Mortgage loans held for sale		163,004		28,818		134,186		465.6	%
Other interest-earning assets		84,123		3,949		80,174		2030.2	%
Investment securities		2,385,358		2,713,791		(328,433	)	-12.1	%
Loans, net of allowance		7,657,174		6,138,806		1,518,368		24.7	%
Premises and equipment		149,492		120,372		29,120		24.2	%
Accrued interest receivable		42,214		32,828		9,386		28.6	%
Goodwill and intangible assets		388,260		148,860		239,400		160.8	%
Other assets		212,614		124,498		88,116		70.8	%
Total Assets	$	11,418,278	$	9,620,191	$	1,798,087		18.7	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	7,981,147	$	6,784,175	$	1,196,972		17.6	%
Short-term borrowings		1,265,360		1,182,473		82,887		7.0	%
Long-term debt		773,129		571,964		201,165		35.2	%
Other liabilities		163,123		113,130		49,993		44.2	%
Total Liabilities		10,182,759		8,651,742		1,531,017		17.7	%
Shareholders’ equity		1,235,519		968,449		267,070		27.6	%
Total Liabilities and Shareholders’ Equity	$	11,418,278	$	9,620,191	$	1,798,087		18.7	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial, industrial and financial	$	1,975,980	$	1,621,583	$	354,397		21.9	%
Commercial - agricultural		319,647		339,032		(19,385	)	-5.7	%
Real estate - construction		690,326		289,271		401,055		138.6	%
Real estate - residential mortgage		556,966		436,043		120,923		27.7	%
Real estate - commercial mortgage		2,540,554		2,042,234		498,320		24.4	%
Real estate - home equity		1,110,126		914,891		195,235		21.3	%
Consumer		496,031		508,518		(12,487	)	-2.5	%
Leasing and other		57,671		65,505		(7,834	)	-12.0	%
Total Loans, net of unearned income	$	7,747,301	$	6,217,077	$	1,530,224		24.6	%
Deposits, by type:
Noninterest-bearing demand	$	1,579,400	$	1,328,266		251,134		18.9	%
Interest-bearing demand		1,479,124		1,269,315		209,809		16.5	%
Savings deposits		1,916,942		1,771,865		145,077		8.2	%
Time deposits		3,005,681		2,414,729		590,952		24.5	%
Total Deposits	$	7,981,147	$	6,784,175	$	1,196,972		17.6	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended March 31						Variance
	2005			2004			$			%
	(in thousands)
Interest Income:
Loans, including fees	$	116,628		$	88,466		$	28,162		31.8	%
Investment securities:
Taxable		18,261			21,736			(3,475	)	-16.0	%
Tax-exempt		2,849			2,533			316		12.5	%
Dividends		1,084			952			132		13.9	%
Mortgage loans held for sale		1,812			239			1,573		658.2	%
Other interest income		176			10			166		1660.0	%
Total Interest Income		140,810			113,936			26,874		23.6	%
Interest Expense:
Deposits		27,808			20,350			7,458		36.6	%
Short-term borrowings		6,824			3,327			3,497		105.1	%
Long-term debt		7,930			7,292			638		8.7	%
Total Interest Expense		42,562			30,969			11,593		37.4	%
Net Interest Income		98,248			82,967			15,281		18.4	%
Provision for loan losses		800			1,740			(940	)	-54.0	%
Net Interest Income after Provision		97,448			81,227			16,221		20.0	%
Other Income:
Investment management & trust services		9,019			8,645			374		4.3	%
Service charges on deposit accounts		9,332			9,505			(173	)	-1.8	%
Other service charges and fees		5,556			5,026			530		10.5	%
Gain on sale of mortgage loans		6,049			1,714			4,335		252.9	%
Investment securities gains		3,315			5,828			(2,513	)	-43.1	%
Other		2,582			1,320			1,262		95.6	%
Total Other Income		35,853			32,038			3,815		11.9	%
Other Expenses:
Salaries and employee benefits		44,201			36,758			7,443		20.2	%
Net occupancy expense		7,498			5,518			1,980		35.9	%
Equipment expense		3,070			2,641			429		16.2	%
Data processing		3,169			2,819			350		12.4	%
Advertising		1,973			1,528			445		29.1	%
Intangible amortization		1,179			991			188		19.0	%
Other		12,641			12,017			624		5.2	%
Total Other Expenses		73,731			62,272			11,459		18.4	%
Income Before Income Taxes		59,570			50,993			8,577		16.8	%
Income taxes		18,039			15,147			2,892		19.1	%
Net Income	$	41,531		$	35,846		$	5,685		15.9	%
SHARE PER-SHARE INFORMATION:
Net income:
Basic	$	0.33		$	0.32		$	0.01		3.1	%
Diluted		0.33			0.31			0.02		6.5	%
Cash dividends	$	0.165		$	0.152			0.01		8.6	%
Book value		9.82			8.51			1.31		15.4	%
Tangible book value		6.73			7.21			(0.48	)	-6.7	%
Weighted average shares (basic)		125,881			113,691			12,190		10.7	%
Weighted average shares (diluted)		127,431			114,681			12,750		11.1	%
Shares outstanding, end of period		125,872			113,738			12,134		10.7	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.50	%		1.49	%
Return on average equity		13.48	%		15.18	%
Return on average equity (tangible)		19.56	%		17.94	%
Net interest margin		3.95	%		3.79	%
Efficiency ratio		54.5	%		55.0	%
Average equity to average assets		11.1	%		9.8	%

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended March 31
	2005							2004
	Balance			Interest		Rate (1)		Balance			Interest		Rate (1)
	(dollars in thousands)
ASSETS
Interest-earning assets:
Loans and leases	$	7,675,034		$	116,628	6.16	%	$	6,187,988		$	88,466	5.75	%
Taxable investment securities		1,983,864			18,261	3.73	%		2,402,420			21,736	3.64	%
Tax-exempt investment securitites		335,355			2,849	3.45	%		276,143			2,533	3.69	%
Equity securities		123,800			1,084	3.55	%		131,553			952	2.91	%
Total Investment Securities		2,443,019			22,194	3.68	%		2,810,116			25,221	3.61	%
Mortgage loans held for sale		112,619			1,812	6.53	%		15,212			239	6.32	%
Other interest-earning assets		28,699			176	2.49	%		3,741			10	1.08	%
Total Interest-earning Assets		10,259,371			140,810	5.57	%		9,017,057			113,936	5.08	%
Noninterest-earning assets:
Cash and due from banks		322,793							300,789
Premises and equipment		149,017							121,428
Other assets		569,527							315,953
Less: allowance for loan losses		(90,489	)						(78,732	)
Total Assets	$	11,210,219						$	9,676,495
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,494,984		$	2,970	0.81	%	$	1,268,671		$	1,355	0.43	%
Savings deposits		1,911,820			4,466	0.95	%		1,760,104			2,507	0.57	%
Time deposits		2,996,377			20,372	2.76	%		2,431,742			16,488	2.73	%
Total Interest-bearing Deposits		6,403,181			27,808	1.76	%		5,460,517			20,350	1.50	%
Short-term borrowings		1,239,454			6,824	2.23	%		1,345,285			3,327	0.99	%
Long-term debt		681,450			7,930	4.72	%		570,075			7,292	5.14	%
Total Interest-bearing Liabilities		8,324,085			42,562	2.07	%		7,375,877			30,969	1.69	%
Noninterest-bearing liabilities:
Demand deposits		1,509,118							1,257,541
Other		127,148							93,352
Total Liabilities		9,960,351							8,726,770
Shareholders’ equity		1,249,868							949,725
Total Liabilities and Shareholders’ Equity	$	11,210,219						$	9,676,495
Net interest income				$	98,248						$	82,967
Net interest margin (FTE)						3.95	%						3.79	%

(1) Yields on tax-exempt securities are not fully taxable equivalent (FTE).

FULTON FINANCIAL CORPORATION

CONSOLIDATED CONDENSED ENDING BALANCE SHEET (UNAUDITED)

	Quarter Ended				Variance
	March 31 2005		December 31 2004		$			%
	(in thousands)
ASSETS
Cash and due from banks	$	336,039	$	278,065	$	57,974		20.8	%
Mortgage loans held for sale		163,004		158,872		4,132		2.6	%
Other interest-earning assets		84,123		36,688		47,435		129.3	%
Investment securities		2,385,358		2,449,859		(64,501	)	-2.6	%
Loans, net of allowance		7,657,174		7,494,920		162,254		2.2	%
Premises and equipment		149,492		146,911		2,581		1.8	%
Accrued interest receivable		42,214		40,633		1,581		3.9	%
Goodwill and intangible assets		388,260		389,322		(1,062	)	-0.3	%
Other assets		212,614		163,081		49,533		30.4	%
Total Assets	$	11,418,278	$	11,158,351	$	259,927		2.3	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits	$	7,981,147		7,895,524		85,623		1.1	%
Short-term borrowings		1,265,360		1,194,524		70,836		5.9	%
Long-term debt		773,129		684,236		88,893		13.0	%
Other liabilities		163,123		141,777		21,346		15.1	%
Total Liabilities		10,182,759		9,916,061		266,698		2.7	%
Shareholders’ equity		1,235,519		1,242,290		(6,771	)	-0.5	%
Total Liabilities and Shareholders’ Equity	$	11,418,278	$	11,158,351	$	259,927		2.3	%
LOANS AND DEPOSITS DETAIL:
Loans, by type:
Commercial, industrial and financial	$	1,975,980	$	1,946,962	$	29,018		1.5	%
Commercial - agricultural		319,647		326,176		(6,529	)	-2.0	%
Real estate - construction		690,326		626,786		63,540		10.1	%
Real estate - residential mortgage		556,966		543,072		13,894		2.6	%
Real estate - commercial mortgage		2,540,554		2,461,016		79,538		3.2	%
Real estate - home equity		1,110,126		1,108,249		1,877		0.2	%
Consumer		496,031		506,290		(10,259	)	-2.0	%
Leasing and other		57,671		65,996		(8,325	)	-12.6	%
Total Loans, net of unearned income	$	7,747,301	$	7,584,547	$	162,754		2.1	%
Deposits, by type:
Noninterest-bearing demand	$	1,579,400	$	1,507,799	$	71,601		4.7	%
Interest-bearing demand		1,479,124		1,501,476		(22,352	)	-1.5	%
Savings deposits		1,916,942		1,917,203		(261	)	0.0	%
Time deposits		3,005,681		2,969,046		36,635		1.2	%
Total Deposits	$	7,981,147	$	7,895,524	$	85,623		1.1	%

FULTON FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

	Quarter Ended						Variance
	March 31 2005			December 31 2004			$			%
	(in thousands)
Interest Income:
Loans, including fees	$	116,628		$	108,373		$	8,255		7.6	%
Investment securities:
Taxable		18,261			17,157			1,104		6.4	%
Tax-exempt		2,849			2,073			776		37.4	%
Dividends		1,084			1,044			40		3.8	%
Mortgage loans held for sale		1,812			2,041			(229	)	-11.2	%
Other interest-earning assets		176			48			128		266.7	%
Total Interest Income		140,810			130,736			10,074		7.7	%
Interest Expense:
Deposits		27,808			24,440			3,368		13.8	%
Short-term borrowings		6,824			4,880			1,944		39.8	%
Long-term debt		7,930			7,941			(11	)	-0.1	%
Total Interest Expense		42,562			37,261			5,301		14.2	%
Net Interest Income		98,248			93,475			4,773		5.1	%
Provision for Loan Losses		800			1,052			(252	)	-24.0	%
Net Interest Income after Provision		97,448			92,423			5,025		5.4	%
Other Income:
Investment management & trust services		9,019			8,885			134		1.5	%
Service charges on deposit accounts		9,332			9,835			(503	)	-5.1	%
Other service charges and fees		5,556			5,131			425		8.3	%
Gain on sale of mortgage loans		6,049			5,803			246		4.2	%
Investment securities gains		3,315			3,199			116		3.6	%
Other		2,582			2,316			266		11.5	%
Total Other Income		35,853			35,169			684		1.9	%
Other Expenses:
Salaries and employee benefits		44,201			41,422			2,779		6.7	%
Net occupancy expense		7,498			6,277			1,221		19.5	%
Equipment expense		3,070			2,674			396		14.8	%
Data processing		3,169			2,828			341		12.1	%
Advertising		1,973			1,870			103		5.5	%
Intangible amortization		1,179			1,146			33		2.9	%
Other		12,641			14,253			(1,612	)	-11.3	%
Total Other Expenses		73,731			70,470			3,261		4.6	%
Income Before Income Taxes		59,570			57,122			2,448		4.3	%
Income taxes		18,039			17,035			1,004		5.9	%
Net Income	$	41,531		$	40,087		$	1,444		3.6	%
SHARE AND PER-SHARE INFORMATION:
Net income:
Basic	$	0.33		$	0.33		$	—		—
Diluted		0.33			0.33			—		—
Cash dividends	$	0.165		$	0.165			—		—
Book value		9.82			9.88			(0.06	)	-0.6	%
Tangible book value		6.73			6.78			(0.05	)	-0.7	%
Weighted average shares (basic)		125,881			120,402			5,479		4.6	%
Weighted average shares (diluted)		127,431			121,679			5,752		4.7	%
Shares outstanding, end of period		125,872			125,720			152		0.1	%
SELECTED FINANCIAL RATIOS:
Return on average assets		1.50	%		1.51	%
Return on average equity		13.48	%		14.25	%
Return on average equity (tangible)		19.56	%		19.42	%
Net interest margin		3.95	%		3.92	%
Efficiency ratio		54.5	%		54.4	%
Average equity to average assets		11.1	%		10.6	%

FULTON FINANCIAL CORPORATION

AVERAGE BALANCE SHEET ANALYSIS (UNAUDITED)

	Quarter Ended
	March 31, 2005							December 31, 2004
	Balance			Interest		Rate (1)		Balance			Interest		Rate (1)
ASSETS
Interest-earning assets:
Loans and leases	$	7,675,034		$	116,628	6.16	%	$	7,304,563		$	108,373	5.90	%
Taxable investment securities		1,983,864			18,261	3.73	%		1,909,616			17,157	3.57	%
Tax-exempt investment securities		335,355			2,849	3.45	%		246,531			2,073	3.35	%
Equity securities		123,800			1,084	3.55	%		128,147			1,044	3.24	%
Total Investment Securities		2,443,019			22,194	3.68	%		2,284,294			20,274	3.53	%
Mortgage loans held for sale		112,619			1,812	6.53	%		115,349			2,041	7.18	%
Other interest-earning assets		28,699			176	2.49	%		7,679			48	2.54	%
Total Interest-earning Assets		10,259,371			140,810	5.57	%		9,711,885			130,736	5.36	%
Noninterest-earning assets:
Cash and due from banks		322,793							305,087
Premises and equipment		149,017							132,603
Other assets		569,527							479,733
Less: allowance for loan losses		(90,489	)						(87,204	)
Total Assets	$	11,210,219						$	10,542,104
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest-bearing liabilities:
Demand deposits	$	1,494,984		$	2,970	0.81	%	$	1,428,307		$	2,349	0.65	%
Savings deposits		1,911,820			4,466	0.95	%		1,899,260			3,813	0.80	%
Time deposits		2,996,377			20,372	2.76	%		2,734,507			18,278	2.66	%
Total Interest-bearing Deposits		6,403,181			27,808	1.76	%		6,062,074			24,440	1.60	%
Short-term borrowings		1,239,454			6,824	2.23	%		1,117,620			4,880	1.74	%
Long-term debt		681,450			7,930	4.72	%		668,239			7,941	4.73	%
Total Interest-bearing Liabilities		8,324,085			42,562	2.07	%		7,847,933			37,261	1.89	%
Noninterest-bearing liabilities:
Demand deposits		1,509,118							1,446,225
Other		127,148							128,519
Total Liabilities		9,960,351							9,422,677
Shareholders’ equity		1,249,868							1,119,427
Total Liabilities and Shareholders’ Equity	$	11,210,219						$	10,542,104
Net interest income				$	98,248						$	93,475
Net interest margin (FTE)						3.95	%						3.92	%

(1) Yields on tax-exempt securities are not fully taxable equivalent (FTE).

FULTON FINANCIAL CORPORATION

LOAN QUALITY INFORMATION (UNAUDITED)

	Quarter Ended March 31
	2005			2004
	(in thousands)
Gross charge-offs	$	1,819		$	2,688
Recoveries		1,519			1,519
Net Charge-offs	$	300		$	1,169
Net charge-offs to average loans		0.02	%		0.08	%
Non-accrual loans	$	19,232		$	19,594
Accruing loans 90+ days overdue		6,545			10,758
Other real estate owned		3,244			356
Total Non-Performing Assets	$	29,021		$	30,708
Non-accrual loans to total loans		0.25	%		0.32	%
Non-performing assets to total loans and OREO		0.37	%		0.49	%
Non-performing assets to total assets		0.25	%		0.32	%
Allowance for loan losses to loans outstanding		1.16	%		1.26	%
	Quarter Ended
	March 31 2005			December 31 2004
	(in thousands)
Gross charge-offs	$	1,819		$	2,588
Recoveries		1,519			882
Net Charge-offs	$	300		$	1,706
Net charge-offs to average loans		0.02	%		0.09	%
Non-accrual loans	$	19,232		$	22,574
Accruing loans 90+ days overdue		6,545			8,318
Other real estate owned		3,244			2,209
Total Non-Performing Assets	$	29,021		$	33,101
Non-accrual loans to total loans		0.25	%		0.30	%
Non-performing assets to total loans and OREO		0.37	%		0.44	%
Non-performing assets to total assets		0.25	%		0.30	%
Allowance to loans		1.16	%		1.18	%